People pay £30,000 more to live in a market town

News at Newton Fallowell | 01/11/2017

What’s the latest?

Homebuyers are prepared to pay a £30,000 premium for the lifestyle benefits that come from living in a market town.

The typical home in an English market town costs £280,690, an average of £30,788 or 12% more than properties in neighbouring towns, according to mortgage lender Lloyds.

House prices in these towns have jumped by 21% during the past five years, with homes in Beaconsfield in Buckinghamshire, England’s most expensive market town, now commanding seven-figure price tags.

Andrew Mason, mortgages product director at Lloyds, said: “Understandably, homebuyers continue to be attracted to the charm and high quality of life offered by market towns and are typically happy to pay extra to live there.”

10 most expensive market towns 2017

Market town

County

Region

Average house price 2017 (£)*

Beaconsfield

Buckinghamshire

South East

1,049,659

Henley-on-Thames

Oxfordshire

South East

831,452

Alfresford

Hampshire

South East

541,529

Cranbrook

Kent

South East

490,566

Petersfield

Hampshire

South East

484,524

Thame

Oxfordshire

South East

476,365

Lewes

Sussex

South East

463,836

Hertford

Hertfordshire

South East

452,843

Marlborough

Wiltshire

South West

441,623

Saffron Walden

Essex

South East

441,583

Why is this happening?

Market towns typically combine rural charm with a certain level of amenities, such as shops, restaurants and transport links.

Unsurprisingly, this combination of factors makes them attractive places to live, increasing demand and driving up prices.

Meanwhile, because of their historic nature, there are generally not many new-build developments in or close to market towns, meaning the supply of properties remains limited.

At the same time, a number of market towns in the south east are within commutable distance of London, making them particularly appealing to people who work in the capital but do not want to live there.

This modern four-bedroom detached home in Beaconsfield is on the market for £875,000, and forms part of a development of just five properties

For £625,000 on Zoopla, this four-bedroom terraced house in Henley-on-Thames is a period property with feature fireplaces

Who does it affect?

The popularity of market towns means properties in these areas are increasingly priced beyond the reach of many people.

This is because the typical home in one of the towns now costs 7.9 times average gross earnings for a fulltime worker in England.

But houses in some market towns are significantly more expensive than others.

Beaconsfield is the priciest market town, with average homes costing just over £1m, followed by Henley-on-Thames, in Oxfordshire, at £831,452 and Alfresford, in Hampshire, at £541,529.

Market towns with highest house price increases 2012 – 2017

Market town

County

Average house price 2012* £

Average house price 2017* £

% Change 2012 - 2017

Henley on Thames

Oxfordshire

542,605

831,452

53%

Thame

Oxfordshire

311,782

476,365

53%

Ampthill

Bedfordshire

244,437

360,798

48%

Hitchin

Hertfordshire

271,343

392,276

45%

Daventry

Northamptonshire

184,010

264,084

44%

Diss

Norfolk

201,658

289,382

44%

Yateley

Hampshire

271,980

387,671

43%

Sandwich

Kent

223,037

317,653

42%

Hertford

Hertfordshire

318,524

452,843

42%

Cromer

Norfolk

172,061

244,345

42%

All market towns in England

232,117

280,690

21%

Sounds interesting. What’s the background?

Beaconsfield is not only England’s most expensive market town, but it also commands the highest premium on the cost of homes compared with the rest of the county at 161%.

Wetherby, in West Yorkshire, has the second highest premium at 110%, followed by Henley-on-Thames at 108%.

There is a significant north-south divide in the cost of homes in market towns, with the 10 most expensive places all in the south east, while the 10 cheapest are in northern regions.

Ferryhill, in Durham, provides the best value for people who want to live in a market town, with homes there costing an average of just £78,184.

Properties in Crook, also in Durham, and Immingham, in Lincolnshire, cost an average of less than £116,000, while homes in Stanhope and Saltburn, both in Durham, and Tickhill, in Derbyshire, come in at under £150,000.

This characterful four-bedroom cottage dating back to the 1700s is available for £310,000 in the market town of Tickhill

10 most affordable market towns 2017

Market town

County

Region

Average house price 2017 (£)*

Ferryhill

Durham

North

78,184

Crook

Durham

North

115,659

Immingham

Lincolnshire

Yorkshire and the Humber

115,769

Stanhope

Durham

North

142,535

Saltburn

Durham

North

144,717

Tickhill

Derbyshire

East Midlands

147,543

Guisborough

North Yorkshire

Yorkshire and the Humber

151,309

Marsden

West Yorkshire

Yorkshire and the Humber

154,830

Boston

Lincolnshire

East Midlands

161,538

Cartmel

Cumbria

North

165,335

*Lloyds' survey tracked house price movements in 135 market towns across England, based on data from the Land Registry, for the 12 months to June 2017

Top 3 takeaways

Home-buyers will pay a £30,000 premium for the lifestyle benefits that come from living in a market town

The typical home in an English market town costs £280,690, an average of £30,788 or 12% more than properties in neighbouring towns

House prices in these towns have jumped by 21% during the past five years

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